02006cam a22002657 4500001000600000003000500006005001700011008004100028100002200069245008600091260006600177490004100243500001800284520077500302530006101077538007201138538003601210690011701246690016201363700002401525710004201549830007601591856003701667856003601704w6775NBER20150331182235.0150331s1998 mau||||fs|||| 000 0 eng d1 aRamey, Valerie A.10aDisplaced Capitalh[electronic resource] /cValerie A. Ramey, Matthew D. Shapiro. aCambridge, Mass.bNational Bureau of Economic Researchc1998.1 aNBER working paper seriesvno. w6775 aOctober 1998.3 aThis paper studies the efficiency with which physical capital can be reallocated across sectors. It presents a model of a firm selling specialized capital in a thin resale market. The model predicts that the selling price depends not only on the sectoral specificity of capital, but also on the thinness of the market and the discount factor of the firm. It then provides empirical evidence on the sectoral mobility of capital based on equipment-level data from aerospace industry auctions. These data track the flow of used capital across industries, as well as the discounts at which the capital sells. The results suggest substantial sectoral specificity of capital. Capital that flowed out of the sector sold for only one-third of its estimated replacement cost. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aE22 - Investment • Capital • Intangible Capital • Capacity2Journal of Economic Literature class. 7aD24 - Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity2Journal of Economic Literature class.1 aShapiro, Matthew D.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w6775.4 uhttp://www.nber.org/papers/w677541uhttp://dx.doi.org/10.3386/w6775